EUR/CAD Dips to 1.6075 as German Factory PMI Lags

Written by Sandra Leggero

Sandra Leggero has a background in financial markets, having spent more than 9 years in commodities trading for several European and Asian companies. She holds a degree in Economics from the University of Pavia and specializes in emerging markets.

, | Updated: September 23, 2026

Key Moments

EUR/CAD paused a four-day advance and traded near 1.6090 during European hours on Wednesday after fresh HCOB PMI data
Germany’s Manufacturing PMI slipped to 53.8, missing the 54.5 consensus, while Services PMI rebounded to 52.9 and lifted the Composite PMI to 53.8
Canadian Dollar upside remained constrained as WTI crude stayed below $90.00 per barrel amid easing concerns over Middle Eastern supply risks

Euro Under Pressure After Mixed Eurozone PMI Signals

EUR/CAD halted its four-day winning streak on Wednesday, with the pair trading around 1.6090 during the European session. The cross came under pressure as the Euro (EUR) held earlier losses following the latest release of Hamburg Commercial Bank (HCOB) Purchasing Managers’ Index (PMI) figures for Germany and the wider Eurozone.

Preliminary September data for the Eurozone indicated a modest improvement in overall business activity. The services sector is projected to see a small uptick, with the Services PMI expected to rise to 51.7 from 51.6 in August. Manufacturing activity is anticipated to remain unchanged, with the Manufacturing PMI steady at 52.7, suggesting stable conditions in the goods-producing sector.

Germany’s Services Rebound Offsets Manufacturing Slowdown

Germany’s latest PMI readings showed a divergent performance across sectors. Manufacturing weakened unexpectedly, with the Manufacturing PMI easing to 53.8. This outcome underperformed both the consensus estimate of 54.5 and the prior reading of 54.3, pointing to a slowdown in factory output growth.

In contrast, the services sector registered a notable recovery. The German Services PMI jumped to 52.9 from 49.7 in August, moving back above the 50.0 threshold that separates contraction from expansion. The stronger performance in services helped lift Germany’s overall Composite PMI to 53.8, up from 51.8 in the previous month, signaling firmer momentum in aggregate private-sector activity.

Canadian Dollar Capped by Softer Oil Despite Euro Weakness

Although the Euro retreated after the PMI releases, downside in EUR/CAD appears constrained by a lack of follow-through strength in the Canadian Dollar (CAD). The CAD continues to face challenges from subdued crude oil prices, with West Texas Intermediate (WTI) holding below $90.00 per barrel. Participants focused on commodity-linked currencies remain attentive to shifts in global oil supply dynamics.

Oil markets stayed relatively calm as developments pointed toward progress in addressing supply disruptions in the Middle East. Saudi Arabia is preparing to resume exports through its East-West pipeline, providing an alternative route that bypasses the Strait of Hormuz. At the same time, US President Donald Trump noted that diplomatic discussions with Iranian officials had been productive, suggesting the prospect of greater stability in the region.

German HCOB Manufacturing PMI – Snapshot

The HCOB Manufacturing PMI is a key gauge of conditions in Germany’s manufacturing sector and is released monthly by S&P Global and Hamburg Commercial Bank (HCOB). The index is compiled from surveys of senior executives at private-sector manufacturing firms, capturing month-over-month changes in activity.

Survey responses provide early indications of shifts in broader economic measures such as Gross Domestic Product (GDP), industrial production, employment, and inflation. Given Germany’s role as a major manufacturing center within Europe, the country’s PMI readings are often viewed as an indicator of the sector’s health across the region.

The index ranges from 0 to 100. A value of 50.0 signifies no change compared with the previous month. Readings above 50 generally indicate an expansion in manufacturing activity, typically considered supportive for the Euro, while readings below 50 point to contraction, often seen as negative for the currency.